Residential Dubai Property Prices Fall by 41% In the First Quarter

As said by a property consultant, Colliers International, the residential prices in Dubai has fallen by 41 percent, in the first quarter of 2009. This fall was backed by the decline in the mortgage and cash transactions. Due to the global financial crisis, banks discouraged lending. Therefore speculator have left the market. The level of correction stands at 34 percent.

The plunge in prices has wiped away two years of profits from property values. Colliers have also reported 8 percent fall in residential prices during the period October and December, which was the first quarter fall since the real estate boom began in Dubai. As per the data collected by Colliers, the areas responsible for the boom in Dubai real estate sector, is the one which was permitted to be bought by foreigners. Since 2002, the Dubai property market was open to the non-Emiratis.

Colliers Chief Operating Officer, John Davis said “We will see a further potential decrease in pricing, but it won’t see the same drastic fall that we have seen in the first quarter”.

A new industry study revealed, despite the correction in real estate prices, Dubai owns the most expensive residential properties in February amongst the 34 countries surveyed. In the list of hosting the most expensive properties Dubai is followed by Singapore, Moscow and Hong Kong.